The resources and links shared on this guide are provided for informational/educational purposes only and should not be viewed as financial advice. Seek the assistance of a qualified fiduciary for advice about your personal financial situation and decisions. 

Things to remember:

Sam's story says that financial advice provides so many options and contradictions that we might feel paralyzed and unable to make any choices, to our financial detriment. 

Discussion Questions:

Do you/have you ever felt paralyzed by money and finances?

When does that happen?

How do you handle the feeling? 

Reflection:

Many financial terms appear in the introduction. Which ones do you know? Can you explain what they mean? Which ones are new to you? 

Some of the terms: Vanguard, 401(k), mutual fund, target date fund, securities, fiduciary standard, Roth, SEP, 529, actively managed funds. 

Use Investopedia to look up the terms you don't know or aren't sure of. Write these new terms down in your journal. 

Write about your feelings about money in your journal

Key Takeaways:

Don't let your fears overwhelm you and stop you from taking action to manage your finances.

Activities

Resources Mentioned

Things to remember:

1. This is not about shaming you. You are not the only person who struggles with money. We all do. 

2. You cannot/should not try to change everything about your money habits drastically and all at once. Start slowly. Build new habits and skills over time. 

Discussion Questions:

Do you keep a budget? Why or why not?

What is your regular method of payment: cash or card?

Why do you use that method most? 

What are the benefits and drawbacks of using a card? Cash?

Do you have an emergency fund?

If yes, how did you start saving it? What was the process like?

If no, what are some challenges to starting one?

What are some budget-friendly ideas for having fun?

Reflection:

1. Keep a one week money diary. Write down/track all of your spending for at least one week in your journal. 

2. After your money diary, write down your list of unavoidable expenses (bills), necessary luxuries (Netflix subscription?), and potential excesses. Where can you easily cut back? What can you work on over time?

Key Takeaways:

• Our culture encourages us to spend and select luxury items. We are conditioned not to save
• Saving is a habit, and you build it over time
• Adjusting for inflating, wages have stagnated. The cost of living has risen. This makes it harder to save. 
• Aim to save 10-20% of your income. If you can't save that much, set a lower target and work your way up as you can. 
• An emergency fund/savings are there when you have an expected expenses (a job loss) and unexpected "expected" expenses (a car repair)

Resources Mentioned:

Further Reading:

Things to remember:

1. Many people carry credit card debt and other forms of debt.

2. People in previous generations didn't have the same debt problems because there was less access to credit. It's incredibly persistent and pervasive in our current society

3. Debt doesn't make you a bad person

4. Perpetually carrying around debt limits your financial future. 

Discussion Questions:

Think about how often you are offered a credit card application. Have any of the offers surprised you?

Do you feel overwhelmed or shamed by debt? Does credit card debt seem normal or common to you?

The authors present two different debt repayment strategies:

1. Prioritizing paying off debts with the highest interest rate first

2. Paying off debts from smallest to largest

Have you tried either method? Which do you think would work better for you? Why? 

How do you feel about student loans?

Reflection:

If you have debts, get out your bills and write down all the amounts along with the interest rates. Decide which method you will use to start working on repayment

Key Takeaways:

Credit Card Debt  

• Pay off your cards in full every month if you can
• If you cannot pay off all of your debts yet, you must try to pay more than the minimum. Select a strategy for repayment and begin the process
• Credit card debt has an extremely high interest rate. Not paying off your cards can have a huge impact on your finances over time because you lose so much additional money to interest
• Get a debt accountability partner if you need one to help you stay on track
• Try to negotiate lower interest rates with your creditors. It never hurts to ask, and the worst they can do is say no. If you are in a repayment phase, lower interest rates will save you money over time. 
• If you choose a balance transfer to a lower interest card, proceed with caution. Make sure you understand all the fine print and do not run up additional balances on the card that cannot be repaid before the higher interest rate kicks in.
• Use cash or debit if you have trouble not overspending with credit cards
• Credit card reward programs encourage you to spend more money on your card than you may be able to pay off. They are not worth it in the long run.

Student Loans

• Know what you owe and who your lenders are. 
• Try to only borrow from the federal government. Private bank loans may have variable interest rates, higher fees, and can make you ineligible for some repayment programs
• Avoid consolidation plans -- most have a lot of fees and are not beneficial to the consumer. Once you consolidate, you are stuck with your plan
• Don't default! If you can't make your payments, call your creditors to work out options

Getting Help

• If you are struggling to pay your bills, contact your creditors, lenders, or other regulatory bodies. Don't ignore the problem,
• If you pursue credit consolidation or debt settlement, make sure you know all of the fine print and understand the fees and borrowing terms involved. It is best to work with a nonprofit agency 
• Bankruptcy is an option, especially if you have assets like a home or retirement account to protect. Don't be afraid to explore it, but realize that it will make it difficult for you to obtain credit for some time, and could affect you in the hiring market. It's better than losing your house. 

Resources Mentioned:

Further Reading:

Things to remember:

1. Thinking about retirement can seem overwhelming and perhaps less important the younger you are -- however, the earlier you start saving, the easier it will be to prepare.
2. The economy is shifting retirement funds largely on to the individual, rather than your employer or Social Security
3. Making small sacrifices now can mean a better quality of life when you retire
4. You may need to retire sooner than you want to or think you will due to illness, disability, or other unknowable life changes.

Discussion Questions:

1. Do you ever think about retirement? How often?
2. Do you have a plan to save for retirement? What is it? How much money do you think you'll need? 
3. Have friends or family members retired? What has the experience been like for them? How are they getting by?
4. What do you want your retirement to be like?

Reflection:

Try the retirement calculator from FINRA below. You might not know all of the exact numbers to input now, but play around with some numbers and see what your estimates might be for retirement saving. 

Key Takeaways:

Use all retirement tools to your advantage

• Learn all you can about the retirement plans offered by your employer
• If your employer matches your contributions, it's wise to take advantage of the match
• Put as much as you can into your retirement savings, even if you cannot fully max it out right now
• Ask questions about opt-out retirement programs so you will know if you need to increase your contributions from the default 

Don't borrow from your retirement accounts

It's generally a bad idea to rollover retirement accounts from previous employers into IRAs due to higher fees

Consider educational savings accounts if you have children 

Resources Mentioned:

Things to remember:

1. Don't buy individual stocks
2. Don't listen to people who tell you to buy individual stocks
3. You aren't a billionaire and you can't invest like one
4. Alternative investments, like bitcoin or art, are very risky and likely bad decisions

Discussion Questions:

1. Have you ever seen any of the programs mentioned, like Mad Money? What do you think about those shows?
2. What do you know or think about the stock market?
3. What kind of messages have you heard about stocks before reading this chapter?
4. Have you heard stories about people who picked one perfect stock? Do you think these stories are common?

Reflection:

Read the article below about Warren Buffett's million-dollar bet on index funds.

Key Takeaways:

• Don't buy individual stocks!

Resources Mentioned:

Things to Remember:

• Low cost index funds are the most value for your money
• Actively managed funds cost have higher fees and historically do not out-perform passively managed index funds
• Your investment choices depend on your age, the amount of money you have to invest, and your personal values/feelings about investing
• No investment is guaranteed or insured
• Always read the fine print and understand the fees you are charged 

Discussion Questions: 

1. What do you picture when someone says investing?
2. Do you have any first-hand experience with investing? What has your experience been like?
3. What do you know about Warren Buffett? 
4. If you have experience with retirement funds/investing, have you ever reviewed the paperwork that discusses the fees? What did you find? 
5. Why can you take bigger risks (if you want to) as a younger investor? Do you want to take bigger risks? Why?
6. What is your process for learning more about investments/finance? Where do you go for this information?

Reflections:

Do the investing math on page 125 -- what are your investment percentages?

Look up the different investment types mentioned on page 125 in Investopedia and some other resources. 

Look up some of the investment companies you see advertised on tv or other places. What can you find on their websites about fees? How did this exercise make you feel about the companies?

Key Takeaways:

• When choosing investment products, you need to prepared to do research and ask questions.
• Higher-cost products do not mean higher returns, historically. 
• Know what you are investing in and compare fees on different products.
• Remember that your investments are not insured or guaranteed, no matter what the marketing materials say. 

Resources Mentioned:

Things to Remember:

• The Fiduciary Standard means your financial advisor must put your interests ahead of their own. This is a legal requirement.
• "Financial advisers" go by many names and generally are NOT required to be fiduciaries. 
• You MUST ask any adviser if they agree to apply the fiduciary standard AT ALL TIMES. It is a good idea to get this agreement in writing. 
• Ask questions about fees and make sure you have this information in writing.
• Expect to pay for financial advice.
• Continue to do due diligence and research all products and recommendations, even if your adviser is a fiduciary. 

Discussion Questions: 

1. What does it mean to be a fiduciary? Why should you seek them out?
2. What did you know or think about financial advisers before reading this chapter? What has changed for you afterward?
3. What are some titles you've heard for financial advisers? What did those terms mean to you, or what did you think they meant?
4. What's the difference between "fee-based" and "fee only"? Which is better? 
5. What steps would you take to research a financial adviser?  
6. What is the most important thing you've learned in this chapter?

Reflections:

Visit the websites mentioned on page 150 -- what did you learn from them? 

Check out the CFPB's "Know Your Financial Adviser" guide.

Look up a local financial adviser in FINRA's BrokerCheck.

Key Takeaways:

• Your adviser should be a fiduciary in ALL CASES. Ask and get it in writing
• Financial advice is not free
• Understand what you are paying for and the fee structure for any advisers.
• Many "advisers" are really salespeople -- they want you to purchase financial products that may benefit them in terms of commissions or fees. 

Resources Mentioned:

Things to Remember:

Discussion Questions:

1. What do you think about owning a home?  
2. What do you know about the home buying process?  
3. Do you personally think real estate is a good investment?  
4. Do you think it should be hard or easy to get a mortgage? Why? 
5. Do you remember the housing crisis? What do you remember?  
6. What do you want most in a home, rented or owned?  
7. Why is it important to put down at least 20%? 
8. What are some important steps to take before buying a home? 

Reflections:

Determine an area you ideally like to live in one day. Use Zillow or a similar tool to look at homes in this area. Calculate a 20% down payment based on the housing prices in the area for the kind of home you would like to have. Detail a few steps (like how much money you would need to save each month) you would take to build up your down payment.  

Reflect more on buying or renting. Which makes the most sense for you right now or in the near future? Do you think your thoughts will change over time? Do you think owning a home is as important as our society indicates?  

Key Takeaways:

• Make sure that you are buying a home for the right reasons -- Do you have an adequate down payment? Do you plan to stay in this area for a long time? 
• Make sure that buying versus renting makes financial sense for you -- have you considered all of the additional expenses of homeownership like taxes, repairs, and maintenance? 
• Be sure to know how much you can afford, and that you have a 20% down payment, plus additional funds for closing costs. 
• Shop for your mortgage

Resources Mentioned:

Things to Remember:

Discussion Questions:

1. What kinds of insurance are you familiar with or do you currently have? 
2. How do you get your health insurance? Do you have a plan for the future?   
3. What do you think about insurance or insurance sales people? 
4. Do you know how you would go about buying insurance?  
5. Do you have an emergency fund? Have you made any changes to it since we started reading the book? 

Reflections:

Examine what kind of insurance coverage you currently have. Review your finances, talk to significant people in your life (like parents or spouse, as applicable) about what additional coverage you might need. Investigate options for additional coverage as necessary.  

Key Takeaways:

• Term life insurance is usually best
• Higher deductibles are generally better for you
• Make sure your doctors are in-network on any plans you choose
• Consider liability coverage twice your net worth
• You still need an emergency fund

Resources Mentioned:

Things to Remember:

Discussion Questions:

1. Do you agree with the authors’ feelings about safety net programs? Why or why not?  
2. Are there particular charities you support? Why do you support these charities? How would you encourage others to support them?  

Reflections:

Think about a time that you need to rely on someone for help, or possibly on a safety net program. Write a little about how that experience impacted you. How would you talk about this experience to another person to explain the importance of helping people?  

Key Takeaways:

• Everyone needs help at some point -- even you! 
• We all rely on government programs too -- Medicare, Social Security, and various deductions we take on our taxes. 

Resources Mentioned:

Things to Remember:

Remember the principles!

Discussion Questions:

1. What is your plan to remember the lessons from this book?  
2. Which rule was the most meaningful or important to you?  
3. What are some ideas you plan to implement immediately (or have implemented since reading)?  
4. What do you plan to implement in the future? 

Reflections:

What would you tell a friend about The Index Card? Write a short pitch for getting someone to read the book, or participate in a future Personal Finance Book Club.  

Key Takeaways:

• Keep the card or the principles from it at the forefront of your mind
• Apply them!
• Stop worrying and enjoy your life

Activities